BDI is a composite of the Capesize, Panamax, and Handymax indices.
Capesize Index: heavy tonnage 79,000 tons+ (iron ore/coal etc)
Panamax Index: medium tonnage (Coal/Grains etc)
Handymax Index: small tonnage (various items)
The Baltic Dry Index correlates very closely with commodity prices, as well as G7exports (88% between 1994 - 2002 according to AXA) and 77% with US export levels, though it typically lags by 2 - 3 months.
90% of all shipping is done by sea as it is 2% of the cost of air freight.
